Open Data is examining the information regarding to the government’s fresh plans for Concessions and Public Private Partnerships (PPP( for the year 2024. The data was obtained from the Ministry of Finance and Economy, extracted from the Draft Law for the Year 2024 Budget.
There are 6 new Concession/PPP projects, worth about ALL 109.5 billion or Euro 1.04 billion that have been planned to be launched during 2024, accounting for about 4.5% of the projected GDP for 2024.
Source: Open Corporates Albania
Comments and Analyses: Open Data Albania
As a result, the portion that the total value of contracts occupies against the Gross Domestic Product (GDP or GDP) for both existing and planned Concessionary and PPP contracts, increases to 30.6% of GDP.
Tabela: 2024 Planned Concession/PPP contracts
Source: Open Corporates Albania
Comments and Analyses: Open Data Albania
If categorized by Sector, of all newly planned PPP concession projects, 4 are in the Transport sector (road and air), with a total value of ALL 104.3 billions, whereas another 2 Concessions/PPP are in the urban development sector, two Concession contracts in the sector of Educational Infrastructure in the Tirana Municipality, with a total value of ALL 5.18 billion.
Source: Open Corporates Albania
Comments and Analyses: Open Data Albania
From what we can deduct from the official information so far, for 5 out of 6 planned PPP concession contracts, the tender competition has been held and the winners have been announced. In regards to 5 of the contracts, the investment will be private, but with a clause of guaranteed level of revenue, with the State Budget acting as guarantor, and 1 is fully privately financed. More specifically:
- Concession/PPP Project: Design, construction, operation, maintenance, rehabilitation and transfer of the Kashar-Pezë-Lekaj road segment.
For this project, a winner has been announced on February 13, 2023, for the Temporary Union of Companies “Gjoka Konstruksion” sh.a & “Junik” sh.p.k.& “Cobial” sh.p.k. & “Pepa Group”sh.p.k & “UDHA” sh.p.k. &“Geoportal” sh.p.k. & “A&E Engineering” sh.p.k- worth Euro 474,869,965, VAT excluded. Based on the standard tender documents, this segment will be subject to payment by road users, with an estimated fee of around 0.02555 Euro/km. In the standard tender documents published, it is evidenced that the State will be the guarantor for the Concessionaire, if the latter fails to meet the level of initial planned revenues. The total estimated value of the Guarantee is Euro 48.5 millions, for the entire duration, while the estimated revenue for this concession is Euro 2.23 billion.
- Concession/PPP Project: Design, construction, operation, maintenance, rehabilitation and transfer of the Milot-Thumanë road segment.
For this project, the winner was announced on 13.02.2023, with an offer worth of Euro 44,620,189 VAT excluded, from the temporary union of companies “Gener 2” sh.p.k., “Illyrian Consulting Engineers” sh.p.k. and “I.D.K- Konstruksion” sh.p.k. Based on the data contained in the standard tender documents, this road segment is planned to be with payment by the users, with an anticipated maximum advance fee of 0.04148 Euro/km. The total revenues anticipated for the concessionaire are at the level of around Euro 291.6 millions throughout the entire duration of the concession. For this road segment as well a guarantee of the level of income from the State is foreseen, starting from the first year of operation until 2040, calculated at a maximum value of about Euro 4.57 millions.
- Project Concession/PPP Design, construction, operation, maintenance, rehabilitation and transfer of the Lekaj-Konjat-Fier road segment.
This project will be implemented by the Union of Companies “Fusha” sh.p.k. &“Agbes Construksion” sh.p.k. & “Albavia” sh.p.k. & “Kupa” sh.p.k & “Ante-Group” sh.p.k.& “Klodioda” sh.p.k. & “A.L.T.E.A. and Geostudio 2000” & “Sphaera” sh.p.k, announced as tender winners on 14.11.2022. This segment has an investment value of Euros 320,000,000, excluding VAT. The duration of the concession/PPP contract is 35 years. In total, during all the years of operation, the company is predicted to collect around Euros 1.29 billion from the basic income. Also for this project, a guarantee of the level of planned revenues from the State, at the level of about Euros 32.5 million, has been foreseen.
- Meanwhile, during the year 2021, the tender was announced for the PPP concession ‘For the design, construction, operation and maintenance of Saranda Airport’. This project is a proposal that came as a request of the Ministry of Infrastructure and Energy and is of the form “Build, Operate, Transfer” (BOT) contract. The source of financing for the construction of this project will be the Private Investor and it has an estimated duration of 35 years. The estimated investment value in the 2024 Budget Project is ALL 4.22 billion VAT excluded.
The new plans in the field of PPP concessions, which require the guarantee of revenues by the State Budget, also mean an increase in the contingent liabilities that the Albanian state must face.
Download excel: Planned Concessions and PPP contracts launching in 2024 and respective valueComments and Analyses: Open Data Albania
Contributed by: Open Data Albania
Translated by: Rezarta Cushaj